12. Business Segments

We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.


	Three Months
For the Periods Ended September 30	2019		2018
Net sales
Animal Health	$	121,850	$	131,189
Mineral Nutrition		52,649		54,838
Performance Products		15,221		14,126
Total segments	$	189,720	$	200,153
Depreciation and amortization
Animal Health	$	6,384	$	5,356
Mineral Nutrition		613		597
Performance Products		377		273
Total segments	$	7,374	$	6,226
Adjusted EBITDA
Animal Health	$	25,061	$	35,716
Mineral Nutrition		3,475		2,563
Performance Products		852		716
Total segments	$	29,388	$	38,995


Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	3,572	$	22,705
Interest expense, net		3,354		2,783
Depreciation and amortization – Total segments		7,374		6,226
Depreciation and amortization – Corporate		407		465
Corporate costs		9,728		8,886
Restructure costs		425		—
Stock-based compensation		565		565
Acquisition-related cost of goods sold		280		—
Acquisition-related transaction costs		462		—
Foreign currency (gains) losses, net		3,221		(2,635)
Adjusted EBITDA – Total segments	$	29,388	$	38,995


	September 30,		June 30,
As of	2019		2019
Identifiable assets
Animal Health	$	572,933	$	508,864
Mineral Nutrition		71,551		67,662
Performance Products		33,323		32,886
Total segments		677,807		609,412
Corporate		117,432		117,259
Total	$	795,239	$	726,671

The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,446 and $3,287 as of September 30, 2019 and June 30, 2019, respectively. The Performance Products segment includes an investment in an equity method investee of $852 and $759 as of September 30, 2019 and June 30, 2019, respectively. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.